How to set the Travel Allowance as Tax Exempted

Our system can set travel allowance as tax exempted if we choose the correct Tax Category in the Payroll Item setting. 

Navigate to the Settings > Payroll > Payroll Item.

In the Payroll Item screen, go to Earning and choose Travel Allowance.

Then, scroll down to the Tax Category 

By choosing Tax category = Travel Allowance, the Worksy system will auto-exempt the travel allowance up to an amount of RM6000 per year.

However, if an employee receives a traveling allowance, petrol allowance, or toll rate exceeding 
RM 6000, the employee can make a further deduction in computing his employment income on the amount spent for official duties. 

For further information about the payroll item setting, you may click on this link: 

• Edit Payroll Item
• List of Tax-Exempted Item